Key Takeaways:
- HSBC used a quantum processor to improve OTC bond trading, achieving a 34% boost in price prediction accuracy and order fulfillment.
- The success suggests quantum computing is nearing practical use in financial services, not a distant future concept.
- The trial raises concerns in the crypto sector, where quantum advances could one day threaten current encryption standards.
HSBC has announced a breakthrough in applying quantum computing to financial markets, showcasing its potential in real-world trading.
In a recent trial, the bank used a quantum processor to support algorithmic trading of over-the-counter (OTC) bonds.
HSBC said it’s achieved a world-first breakthrough in deploying quantum computing in financial markets, as some of Wall Street's biggest firms race to embed the cutting-edge technology in their daily operations. Full story:
— Bloomberg (@business) September 25, 2025
📷️: Lam Yik Fei/Bloomberg pic.twitter.com/bByxLOL7DP
The system delivered a 34% gain in forecasting accuracy and reduced order slippage, improving predictions of whether trades could be executed at desired prices.
Philip Intallura, HSBC’s group head of quantum technologies, emphasized that the results, achieved on current hardware, indicate the industry is approaching a new era in financial services rather than a distant possibility.
The development has also reignited concerns in the cryptocurrency sector.
Since blockchain networks rely on encryption, the rise of quantum computing raises fears of potential vulnerabilities if machines advance enough to break existing cryptographic methods.
This hypothetical event, often called “Q-Day”, is debated across the industry, with estimates ranging from as early as 2030 to decades away.
In late 2024, a Shanghai University team sparked alarm after breaking a 22-bit key, though experts clarified that modern standards use 2,048 to 4,096-bit encryption, which can be further strengthened to stay ahead of quantum threats.
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